A Net Promoter Score (NPS) is used to measure customer satisfaction by measuring the loyalty that exists between a consumer and a provider such as a wireless service provider. Generally, the Net Promoter Score is calculated based on responses to a single question and scoring for the response based on a 0 to 10 scale.
Respondents with a score of 9 to 10 are categorized as Promoters. Promoters are likely to buy more, remaining customers for longer, and making more positive referrals to other potential customers. Detractors respond with a score of 0 to 6 and they are believed to be less likely to exhibit the value-creating behaviors of the Promoters. Responses of 7 and 8 are labeled Passives, and their behavior falls between Promoters and Detractors.
The Net Promoter Score may range from −100 to +100. The Net Promoter Score is calculated according to the following formula:
(Number of Promoters−Number of Detractors)/(Number of Responses)*100
For example, if 200 Responses are received for a survey and 50 have a Detractor score (0-6), 80 have a Passive score (7-8) and 70 have a Promoter score (9-10), then the NPS is +10. The calculation is performed by taking the number of Promoters, e.g. 70, and dividing by the total number of responses, 200, which results in 35% Promoters. A similar calculation is performed with the Detractors, which results in 25% Detractors. To obtain the Net Promoter Score the percent of Promoters (35%) is subtracted from the percentage of Detractors (25%) to arrive at the Net Promoter Score of +10.
However, there are various challenges to implement a customer satisfaction program such as NPS. The most significant challenge is that traditional NPS requires costly and obtrusive Question and Answer surveys. Thus, it would be beneficial to provide a customer satisfaction program that is more cost effective.
Another challenge associated with NPS is that the surveys are performed sporadically and only cover a subset of customers. Thus, it would be beneficial to provide a customer satisfaction program that covers the entire customer base and a customer satisfaction program that operates over a continuous period of time.
An additional challenge associated with NPS surveys is that they require framing questions for a human answer or response. It would be beneficial to provide an indicator for a human response to obviate the need for an actual human response.